15 Group Dynamics

Characteristics of Groups
Question 1
What are features of ‘groups’ in an organization?
Answer
Following are the salient characteristics of groups in an organization:
(a) Group Goal: Every group establishes its own group goals that provide motivation for their
existence.
(b) Group Structure: It is based on the roles to be performed.
(c) Group Patterns of Communication: It is the pattern of message flow in a group.
(d) Group Climate: It is the emotional environment of a group based on:
(i) Bonding and trust among members
(ii) Participative spirit
(iii) Openness and
(iv) High performance goals
Group Dynamics
Question 2
What do you understand by Group Dynamics?
Answer
Groups are the basic building blocks of organizations. It is now very common for groups
of employers to make decisions to solve difficult problems that were once the
domain of authoritarian incentives. Given below are the characteristics of group personality:
1. spirit of conformity
2. respect for group values
3. resistance to change
4. group prejudice
5. collective power

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 Group Dynamics 15.2

Question 3
What are the characteristics of group personality?
Answer
Following are the characteristics of group personality:
(a) Spirit of Conformity: Individual members soon come to realize that in order to gain
recognition, admiration and respect from others they have to achieve a spirit of
conformity. Our beliefs, opinions, and actions are influenced more by group opinion than
by an individual’s opinion, even if it is an expert’s opinion.
(b) Respect for group values: Any working group is likely to maintain certain values and
ideals which make it different from others. In order to deal effectively with a group we
must understand its values which will guide us in foreseeing its programmes and actions.
(c) Resistance to change: It has been observed that a group generally does not take kindly
to social changes. On the other hand the group may bring about its own changes,
whether by dictation of its leader or by consensus. The degree to which a group resists
change serves as an important index of its personality. It helps us in dealing with it
efficiently.
(d) Group prejudice: Just as hardly any individual is free from prejudice, groups have their
own clearly evident prejudices. It is a different matter that the individual members may
not admit their prejudiced attitude to other’s race, religion, nationality etc. But the fact is
that the individual’s prejudices get further intensified while coming in contact with other
members of the group holding similar prejudices.
(e) Collective power: It need not be said that groups are always more powerful than
individuals, how so ever influential the individual may be. That is why individuals may find
it difficult to speak out their minds in groups. There is always the risk of the one-against-
many situation cropping up.
Types of Groups in Organizations
Question 4
Describe types of groups in organization.
Or
State the types of groups in an organisation which play an important role in solving the difficult
problems in an organisation.
Answer
Types of Groups in Organization:
1. Self directed teams – autonomous and self regulated groups of employees empowered
to make decisions.

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 15.3 Business Law, Ethics and Communication

2. Quality Circles – Quality Circle has been defined “as a group of workers from the same
area who usually meet for an hour each week to discuss their quality problems,
investigate causes, recommend solutions and take corrective actions when authority is in
their purview. In other words, Quality Circle is a small group to perform voluntarily quality
control activities within their work area.
3. Committees – are of various types (a) Standing Committee which are permanent in
nature and highly empowered. (b) An advisory Committee comprises of experts in
particular fields (c) An adhoc committee is setup for a particular purpose and after the
goal is achieved, it is dissolved
4. Task Force – Task force is like Committee but it is usually temporary. Task force has
wide power to take action and properly fix responsibility for investigation, results and
proper implementation of decisions
Handling Group Conflicts
Question 5
What do you understand by 'Group conflicts'? How shall these be managed effectively?
Explain.
Answer
Group conflict: Group conflict is an 'express struggle' between two inter-dependent parties
who perceive incompatible goals, scarce resources and interference from the other party in
achieving their goals. There are two aspects in relation to conflict
1. Expression: The two sides must communicate/express about the problem for there to be
conflict.
2. Perception: Conflict evolves perceptions in the two sides may only perceive that their
goals, resources, and interference are incompatible with each other's.
Managing conflicts: The climate in which conflict is managed is important. It is essential
to plan communications to foster a supportive climate, marked by emphasis on
(i) Presenting ideas or options
(ii) Problem orientation- focusing attention the task
(iii) Spontaneity - Communicating openly and honestly
(iv) Empathy - understanding another person's thoughts.
(v) Equality- asking for opinion s
(vi) Willing to listen to the ideas of others.
Successfully managed conflicts can be constructive and can strengthen relationships in
an organisation.

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 Group Dynamics 15.4

Consensus Building
Question 6
Explain Consensus Building.
Answer
Consensus Building: Consensus means overwhelming agreement. Most consensus building
efforts set out to achieve unanimity. The key indicator of whether or not a consensus has been
reached is that everyone agrees with the final proposal and it is important that consensus be
the product of a good-faith effort to meet the interests of all stakeholders. Thus, consensus
requires that someone frame a proposal after listening carefully to everyone's interests. Before
the parties in a consensus building process come together, mediators (or facilitators) can play
an important part in helping to identify the right participants, assist them in setting an agenda
and clarifying the ground rules by which they will operate, and persuading noncompliant
parties to participate.
♦ Problem-Solving Orientation- It is important to be constructive and maintain a problem-
solving orientation, even in the face of strong differences and personal antagonism. It is
in every participant's best interest to behave in a fashion they would like others to follow.
Concerns or disagreement should be expressed in an unconditionally constructive
manner.
♦ Engage in Active Listening-Participants in every consensus building process should be
encouraged (indeed, instructed, if necessary) to engage in what is known as active
listening a procedure for checking to be sure that communications are being heard as
intended.
♦ Disagree Without Being Disagreeable-Participants in every consensus building process
should be instructed to "disagree without being disagreeable." This dictum should
probably be included in the group's written ground rules.
♦ Strive for the Greatest Degree of Transparency Possible-To the greatest extent possible,
consensus building processes should be transparent. That is, the group's mandate, its
agenda and ground rules, the list of participants and the groups or interests they are
representing, the proposals they are considering, the decision rules they have adopted,
their finances, and their final report should, at an appropriate time, be open to scrutiny by
anyone affected by the group's recommendations.
♦ Strive to Invent Options for Mutual Gain-The goal of a consensus building process ought
to be to create as much value as possible and to ensure that whatever value is created
be divided in ways that take account of all relevant considerations. The key to creating
value is to invent options for mutual gain.

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 15.5 Business Law, Ethics and Communication

Question 7
“Once the process of consensus building has begun, mediators try to assist the parties
in their efforts to generate a creative resolution of differences". Examine this statement
and also state in brief the process which should be followed by mediators to resolve the
differences between the parties.
Answer
Process which should be followed by mediators to resolve the differences between the
parties- Efforts which help to generate a creative resolution are:
(i) Problem – solving orientation – it is important to be constructive and maintain a
problem solving orientation, even in the face of strong differences and personal
antagonism. It is in every participant’s best interest to behave in a fashion, they
would like others to follow. Concerns or disagreement should be expressed in
an unconditionally constructive manner.
(ii) Engage in active listening – Participants in every consensus building process
should be encouraged (indeed, instructed, if necessary) to engage in what is
known as active listening.
(iii) Disagree without being disagreeable – Participants in every consensus building
process should be instructed to ‘disagree without being disagreeable’.
(iv) Strive for the greatest degree of transparency possible – To the greatest extent
possible, consensus building process should be transparent. That is, the
group’s mandate, its agenda and ground rules, the list of participants and the
groups or interests they are representing, the proposals they are considering,
the decision rules they have adopted, their finances and their final report should,
at an appropriate time, be open to scrutiny by anyone affected by the group’s
recommendations.
(v) Strive to invent options for mutual gain – The goals of a consensus building
process ought to be to create as much value as possible and to ensure that
whatever value is created be divided in ways that take account of all relevant
considerations. The key to creating value is to invent options for mutual gain.
Negotiation
Question 8
What is meant by “Negotiation”? Name the various steps which can be identified in the
process of negotiation from start to the completion of the process.
Answer
When two or more persons meet together and talk/ discuss on any business or non business
matter, it is known as negotiation. When same persons discuss specific proposals in order to

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 Group Dynamics 15.6

come to a mutually accepted solutions; whether it is with an employer, family member or

business partner. It can be said that negotiation is a common way of settling things in
business.
Steps in the negotiation process
1. Preparing
2. Arguing
3. Signaling
4. Packaging
5. Bargaining
6. Closing and arguing
Question 9
Explain the concept of “Negotiation”. What are its techniques ?
Answer
Negotiation: Negotiation occurs when two or more parties either individuals or groups discuss
specific proposals in order to find a mutually acceptable agreement. Whether it is with an
employer, family member or business associate, we all negotiate for things each day like
higher salary, letter service or solving a dispute with a co worker or family member Negotiation
is a common way of settling conflicts in business. When handled skillfully, negotiation can
improve the position of one or even both but when poorly handled; it can leave a problem still
unsolved and perhaps worse than before.
Techniques for Negotiation:
(a) Spiraling agreements: Begin by reaching a minimums agreement even though it is not
related to the objectives and build, hit by hit, on this first agreement.
(b) Changing of position: Formulate the proposals in a different way, without changing the
final result.
(c) Gathering information: Ask for information from the other party to clarify their position
(d) Making the cake bigger: Offer alternatives that may be agreeable to the other party,
without changing the terms.
(e) Commitments: Formalize agreements orally and in writing before ending the
negotiation.

Exercise
1. Define in brief formal and informal groups.

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 15.7 Business Law, Ethics and Communication

[Hint: Mainly two types of groups are present in organizations: Formal Groups created by
deliberate sanction of management to meet certain official requirement and Informal Groups that
are created because of the operation of the social and psychological factors at the work place]
2. Explain the term group thinking.
[Hint: Groupthink is the tendency of group members to seek agreement solely for agreement's
sake. A group gripped by groupthink fails to be creative, explore alternative solutions, problems,
or concerns in an effort to present a united or cohesive front to outsiders. Group members must
question themselves and their actions to ensure high-quality decision making .]

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